Grocery retailer SatvaCart raises seed funding of Rs 12 crore

The funding in SatvaCart comes at a time when hyper-local delivery companies are facing severe cost pressures, forcing some startups like Dazo to shut operations.ET Bureau | November 06, 2015, 08:09 IST

The funding in SatvaCart comes at a time when hyper-local delivery companies are facing severe cost pressures, forcing some startups like Dazo to shut operations.NEW DELHI: Gurgaon-based grocery retailer SatvaCart has raised seed funding of Rs 10-12 crore, its second angel round.

The company, which is backed by Palaash Ventures, said the funding was led by three senior executives in the insurance, telecom and investment banking sectors, without naming them. Other new and existing investors including Palaash Ventures participated, it said.

SatvaCart plans to use the money to expand to other cities. "The funding will be used to strengthen technology backbone and expand into other geographies," said Rahul Hari, chief executive of SatvaCart.

The company's board of advisers includes Arvind Gupta, cofounder of software product think-tank iSPIRT, and TravelKhana Chief Executive Officer Pushpinder Singh. SatvaCart works on a hybrid model, sourcing from neighbourhood stores to supply groceries to customers, as well as stocking its own inventory.

The funding in SatvaCart comes at a time when hyper-local delivery companies are facing severe cost pressures, forcing some startups like Dazo to shut operations. "We are following deeper penetration model. This allows us to stabilise while not getting too thin too fast," said Hari.